Rupee continues to fall, settles at 282.3 against US dollar

The Pakistani rupee remained at the receiving end against the US dollar, depreciating 1.13% on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 282.3 against the greenback, a decline of Rs3.18 in the inter-bank market.

A day earlier, after three successive gains, the rupee had settled at 279.12 against the US dollar, registering a decline of Rs1.25 or 0.45% in the inter-bank market on Wednesday.

In a key development, SBP Governor Jameel Ahmed said the current account deficit is projected at $7 billion for the ongoing fiscal year against the budgetary target of $10 billion subsequent to measures taken to control imports.

Moreover, the central bank chief informed the National Assembly Standing Committee on Finance that the inquiry report against certain banks on account of foreign exchange manipulation has been completed, indicating variation in banks’ forex profits during a specific period.

Internationally, the dollar was perched near a three-month high on Thursday as Federal Reserve Chair Jerome Powell’s message that interest rates would have to go higher and possibly faster to tame inflation dominated sentiment and kept the US currency in bid.

In the second day of his testimony to Congress on Wednesday, Powell reaffirmed his hawkish message, though struck a cautious note that debate on the scale and path of future rate hikes was still underway and would be data-dependent.

The US dollar index, which measures the greenback against a basket of six peers, slipped 0.02% to 105.61.

The index, however, remained near a three-month peak of 105.88 hit in the previous session, having extended Tuesday’s 1.3% surge, its biggest daily jump since last September.

Oil prices, a key indicator of currency parity, fell for a third day on Thursday as fears over the economic impact of rising interest rates offset a surprise drop in US crude inventories and hopes for Chinese demand.

Inter-bank market rates for dollar on Thursday

BID Rs 282.30

OFFER Rs 284.30

Open-market movement

In the open market, the PKR lost 3.50 rupees for both buying and selling against USD, closing at 281.50 and 284.50, respectively.

Against Euro, the PKR lost 3 rupees for both buying and selling, closing at 294.00 and 297.00 respectively.

Against UAE Dirham, the PKR lost 90 paisa for both buying and selling, closing at 76.50 and 77.20, respectively.

Against Saudi Riyal, the PKR lost 1 rupee for both buying and selling, closing at 74.60 and 75.30, respectively.

Open-market rates for dollar on Thursday

BID Rs 281.50

OFFER Rs 284.50